China stocks rise as AI sector takes the lead

Aug 27, 2025, 12:12 GMT+7
(Reuters) - Chinese shares rose on Wednesday as investors piled into artificial intelligence-related stocks after the government issued a guideline to accelerate the AI adoption in various fields.
** China's blue-chip CSI300 Indexadvanced 0.7% by the lunch break, and the Shanghai Composite Indexgained 0.3%.
** Hong Kong benchmark Hang Sengwas largely flat. The Hang Seng Techrose 0.6%.
** The State Council released an "AI Plus" initiative on late Tuesday to bolster the application of AI in different areas such as technology and consumption.
** AI, cloud computing and semiconductor shares rallied broadly on the back of policy stimulus.
** CSI AI Indexjumped 5.5% by midday, hitting a record high. Semiconductor stocks (.CSI931865) gained 4%.
** "This development represents a powerful catalyst for growth stocks and related subsectors," investment manager KraneShares said in a note.
** Shares of Cambricon Technologiesjumped over 8% to another record high after the AI chip maker swung to profit in the first half.
** Meanwhile, broader economy remains challenging. Official data shows China's industrial profits fell for a third consecutive month in July on demand and deflation woes.
** "The lifespan of this equity rally remains uncertain," analysts at UBS Global Wealth Management chief investment office said in a note.
** Given the deteriorating macro conditions, investors may shift focus to the Fourth Plenary in October, awaiting new measures to support the economy.
** The smaller Shenzhen indexwas up 0.8%, the start-up board ChiNext Composite indexwas higher by 2.41% and Shanghai's tech-focused 50 indexwas up 4.16%.
** The rise in China stocks was also helped by the currency strength.
** China's yuan briefly hit its highest in nearly 10 months against the dollar on Wednesday, thanks to strong guidance fix and weaker dollar.

Sumber : Reuters